FILE - In a Wednesday, July 10, 2013 file photo, Regent Wallace Hall of Dallas takes part in a University of Texas Regents meeting, in Austin, Texas. The House Select Committee on Transparency in State Agency Operations meets Monday, May 12, 2014, to decide whether Hallâs conduct pursuing evidence against University of Texas President Bill Powers warrants a recommendation that he be impeached. (AP Photo/Eric Gay, File) less

FILE - In a Wednesday, July 10, 2013 file photo, Regent Wallace Hall of Dallas takes part in a University of Texas Regents meeting, in Austin, Texas. The House Select Committee on Transparency in State Agency ... more

Photo: Eric Gay, STF

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University of Texas president Bill Powers discusses the search for a new head football coach in Austin, Texas on Sunday, Dec. 15, 2013. Current coach Mack Brown announced he was stepping down from the position following the Valero Alamo Bowl on Dec. 30. (AP Photo/Jack Plunkett) less

University of Texas president Bill Powers discusses the search for a new head football coach in Austin, Texas on Sunday, Dec. 15, 2013. Current coach Mack Brown announced he was stepping down from the position ... more

Photo: Jack Plunkett, FRE

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University of Texas president Bill Powers, left, and athletic director Steve Patterson discuss a search for a new head football coach in Austin, Texas on Sunday, Dec. 15, 2013. Current coach Mack Brown announced he was stepping down from the position following the Valero Alamo Bowl on Dec. 30. (AP Photo/Jack Plunkett) less

University of Texas president Bill Powers, left, and athletic director Steve Patterson discuss a search for a new head football coach in Austin, Texas on Sunday, Dec. 15, 2013. Current coach Mack Brown ... more

UT System Chancellor Francisco Cigarroa asked Powers to resign before the regents meet again July 10, or be fired at the meeting, the source said. Powers told Cigarroa he will not resign, at least not under the terms that the chancellor laid out Friday. Powers told Cigarroa he would be open to discussing a timeline for his exit, the source said.

Powers has developed a tense relationship with the system chancellor and regents in recent months. The ultimatum comes as the university plans to undertake an official investigation into possible legislative influence over campus admissions. Allegations of undue influence, including the admission of family and friends of legislators otherwise not qualified, were heavily publicized by UT System Regent Wallace Hall. A House committee is drafting articles of impeachment for Hall based on his massive records requests and alleged bullying of university officials in his quest to unveil wrongdoing at the flagship.

The regents meet Thursday. The agenda for the meeting has not yet been posted.